Most business cases fail not because the analysis is wrong, but because they are structured to impress rather than to decide. Decision-makers want the answer first, the evidence second.
The Business Case Structure
- Executive Summary (1 page): recommendation → financial impact → resources required
- Situation Analysis: current state, why change is needed, cost of inaction
- Options Analysis: 3 options including "do nothing", with pros/cons/costs
- Recommended Option: detail, implementation plan, milestones
- Risk Analysis: top 5 risks and mitigation strategies
- Financial Justification: NPV, payback period, sensitivity analysis
Key Financial Metrics
Business case financial metrics
| Metric | Formula | Target |
|---|---|---|
| Payback Period | Investment ÷ Annual Savings | < 2 years |
| ROI | (Gain - Cost) ÷ Cost × 100 | > 150% over 3 years |
| NPV | Discounted future cash flows | Positive at 10% discount rate |
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The Decision Test
Ask: "Could a senior executive read just the executive summary and make an informed decision?" If yes, you have written a good business case.
Business CaseStrategic AnalysisDecision MakingConsulting
Tanvir Tuhin
AI consultant, digital marketer, and study abroad mentor based in Aberdeen, UK. Founder of JJAT Education.
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